Foresight Solar Fund Ltd (LSE:FSFL) announced a higher dividend for the year to December 2023 after record energy generation and cash distribution.
A total 7.55p dividend was declared for the year, up on 2022’s 7.12p, adding to previous shareholder returns after a £20 million buyback earlier in the year.
Foesight's portfolio produced 1,094 gigawatt hours worth of electricity over the year, enough to power 400,000 homes, it said on Tuesday.
"Foresight Solar delivered a resilient performance with record electricity production and cash distribution against a challenging market backdrop,” chairman Alexander Ohlsson commented.
“Our operational strength, the powerhouse behind our progressive dividend, enabled us to comfortably meet our dividend target,” he continued, adding the firm was eyeing an 8p dividend for 2024.
Foresight’s net asset value ended the year at £697.9 million, or 118.4p on a per share basis, compared to £771.5 million and 126.5p in 2022.
The firm’s debt gearing was reduced from 40.5% to 38.8% with some £40 million repaid.
“After a challenging year for markets, we believe there are reasons for optimism,” Ohlsson added.
“The energy transition is one of the biggest investment themes of our generation. The solar power opportunity alone is immense.
“Industry fundamentals remain attractive and solar generation continues to be one of the cheapest and most reliable sources of electricity available.”